Should a Family Business Owner Make a Charitable Gift of Her S Corporation Stock
The challenge for a family business owner, though, is that most of her investments consisting of appreciated property are usually in the business, and not in publicly traded stocks or other liquid assets. This does not mean, however, that she has to miss out on the opportunity to donate appreciated property – it is absolutely possible to structure gifts of her own closely held stock so as to maximize the benefit to both her and the receiving charity (and avoid adverse tax outcomes). It just requires the owner and her advisors to do some careful planning and consideration of the many issues that this sort of gift would present.
How 'Problem Finding' Can Help Corporate Boards Avoid Failures
Boards often defer to management because managers have greater skills, knowledge and time. However, this heuristic neglects the fact that failures of self-governance at the management level are not rational. Consequently, boards need to put in place corporate governance systems that stand apart from managers. One such "problem-finding board" is that of Infosys, the large Indian IT firm. Its board has put in place two approaches to problem finding.
The Board’s Role is Slippery
Inadequate corporate governance results when essential information that highlights the possibility of failure does not flow from the CEO to the board. Routinely, the board chair relies on management to set the board agenda and this can be tailored to only safe items. Corporate climate may be that only good news flow to the board, and from low-level staff to senior management. The board at such times is at the mercy of management and may make decisions based on twisted or incomplete information.
Innovation Vs. Transformation: The Difference In A Digital World
Innovation and transformation are often used synonymously, but they are different in the digital world. In some instances, transformation can lead to innovation. In others, innovation can lead to transformation, but this mutually causal relationship is often overlooked since they are thought to mean the same thing. While indeed related, it is crucial for modern business leaders to know the difference between the two terms.
Most Family Businesses Fail To Effectively Monetize Their Personal And Professional Networks
Very often a person’s net worth is a function of their networks. This is often especially the case for family businesses of all size and types, the world over. In an international survey of 336 middle-market family businesses, more than nine out of ten family members who are senior executives at their firms identified that the family’s collection of contacts have been essential to the success of firm. These relationships produce a diverse number results such as sourcing new clients, getting superior terms with suppliers, and opening governmental doors.